Nostra
February 7th, 2012, 10:16 AM
Yet another benefit from the world cup. Seems though they overpaid, but at the rate Brazil is growing (have you guys seen how rapidly developing that country is), they must have thought it was worthwhile, plus they're eligible for state loans
SÃO PAULO—Brazil raised $14 billion in a privatization of three major airports, a bid to speed modernization of overcrowded hubs before the country hosts soccer's 2014 World Cup and the 2016 Olympic Games.
Investor groups including a Brazilian pension fund, private construction firms and airport operators bid for concessions Monday to operate the international airport in São Paulo, Latin America's busiest, as well as growing hubs in the capital Brasilia and in Campinas for up to 30 years. The concessions require the firms to improve the airports. The sale of other long-term operating licenses are planned.
Enlarge Image
CloseBloomberg News
The airport serving São Paulo is among those being privatized.
.Officials said strong demand for the concessions reflected heightened investor interest in one of the world's fastest growing airline markets. Brisk economic growth and record low unemployment have created millions of entrants into Brazil's middle class. That in turn has spurred air traffic growth of double-digit rates, with demand jumping 16% in 2011 to about 180 million passengers.
But the country's airports are groaning under the rapid expansion of the domestic economy. "Chaos in the Air" has become a catch phrase for local news coverage of the long lines and delays that already plague the country's airports around holidays.
That has heightened concern that the country will be ready to receive travelers during the World Cup and the 2016 Olympic Games. Though President Dilma Rousseff's leftist party is against privatization, Ms. Rousseff is selling long-term operating licenses as a way to accelerate expansion plans. Brazil's airports are currently operated by the government's Infraero agency.
Contracts to upgrade and operate airports in the cities of São Paulo, Campinas and Brasilia were sold for a total of 24.5 billion Brazilian reais ($14 billion), more than four times the government's initial asking price, a reflection of strong demand for the opportunity to manage the infrastructure of one of the world's fastest growing airline markets.
"The result is a positive sign that this country is a place where investments are safe and profitable," said Wagner Bittencourt, Brazil's Civil Aviation Secretary, which oversaw the auction process.
Brazil opted last year to privatize several airports, and sold a small airport in Brazil's northeast. Monday's auction marks a major step forward.
The prize asset, the Guarulhos airport in São Paulo, was taken by Investimentos e Participacoes em Infraestrutura SA—or Invepar, a holding company made up of construction companies and some of Brazil's largest pension funds—together with Airports Company South Africa. The partners bid 16.2 billion Brazilian reais, considerably higher than the next bid of 12.9 billion reais, made by EcoRodovias Infraestrutura e Logistica SA and Germany's Fraport AG :banana: :banana:
http://online.wsj.com/article/SB10001424052970204369404577207701246033194.html
SÃO PAULO—Brazil raised $14 billion in a privatization of three major airports, a bid to speed modernization of overcrowded hubs before the country hosts soccer's 2014 World Cup and the 2016 Olympic Games.
Investor groups including a Brazilian pension fund, private construction firms and airport operators bid for concessions Monday to operate the international airport in São Paulo, Latin America's busiest, as well as growing hubs in the capital Brasilia and in Campinas for up to 30 years. The concessions require the firms to improve the airports. The sale of other long-term operating licenses are planned.
Enlarge Image
CloseBloomberg News
The airport serving São Paulo is among those being privatized.
.Officials said strong demand for the concessions reflected heightened investor interest in one of the world's fastest growing airline markets. Brisk economic growth and record low unemployment have created millions of entrants into Brazil's middle class. That in turn has spurred air traffic growth of double-digit rates, with demand jumping 16% in 2011 to about 180 million passengers.
But the country's airports are groaning under the rapid expansion of the domestic economy. "Chaos in the Air" has become a catch phrase for local news coverage of the long lines and delays that already plague the country's airports around holidays.
That has heightened concern that the country will be ready to receive travelers during the World Cup and the 2016 Olympic Games. Though President Dilma Rousseff's leftist party is against privatization, Ms. Rousseff is selling long-term operating licenses as a way to accelerate expansion plans. Brazil's airports are currently operated by the government's Infraero agency.
Contracts to upgrade and operate airports in the cities of São Paulo, Campinas and Brasilia were sold for a total of 24.5 billion Brazilian reais ($14 billion), more than four times the government's initial asking price, a reflection of strong demand for the opportunity to manage the infrastructure of one of the world's fastest growing airline markets.
"The result is a positive sign that this country is a place where investments are safe and profitable," said Wagner Bittencourt, Brazil's Civil Aviation Secretary, which oversaw the auction process.
Brazil opted last year to privatize several airports, and sold a small airport in Brazil's northeast. Monday's auction marks a major step forward.
The prize asset, the Guarulhos airport in São Paulo, was taken by Investimentos e Participacoes em Infraestrutura SA—or Invepar, a holding company made up of construction companies and some of Brazil's largest pension funds—together with Airports Company South Africa. The partners bid 16.2 billion Brazilian reais, considerably higher than the next bid of 12.9 billion reais, made by EcoRodovias Infraestrutura e Logistica SA and Germany's Fraport AG :banana: :banana:
http://online.wsj.com/article/SB10001424052970204369404577207701246033194.html